Cancer diagnostic-maker Angle (AGL:AIM) is one of London’s largest fallers in early trading after announcing a massively discounted placing. The £33.4 million cap plummets 12% to 74p after outlining a plan to raise £6.7 million, after expenses, by selling shares to institutions at 65p each.
This is a hefty 22.8% discount to Friday’s 84.2p closing price, perhaps illustrating a measure of cash call fatigue. This is the company's fourth fund raising since January 2012 during which it has tapped investors for in excess of £11 million. Today's deal also includes the possibility for an extra £1.5 million to be raised if its open offer proves popular.
Angle will use the new funds to continue trials of its Parsortix system designed to detect ovarian cancer. Recent studies have shown Parsortix correctly identifying nine out of 10 ovarian cancerous samples in data published last month (27 Jan). This was almost four times higher than the 24.5% average detection rate using existing methods and the device is now entering clinical trials, which are expected to take 18 months.
The proceeds will also be used to assess the system’s effectiveness in identifying other strains of the disease. Angle has already been working on this area of its strategy forming a collaboration agreement with the MD Anderson Cancer Center in Texas to investigate the clinical use of Parsortix as a companion diagnostic in colorectal cancer patients.
This is a milestone year for Angle. Parsortix, which has sales clearance in Europe, is expected to collect its first sales revenues this year from the region’s research market. A launch in the $8 billion clinical market could be two years away at the earliest.